GM Korea could make next-gen Cruze if union calls off strike

SEOUL, July 24 Thu Jul 24, 2014 4:29am EDT

SEOUL, July 24 (Reuters) - General Motors Co's South Korean subsidiary on Thursday said it has told its employee union that the U.S. carmaker could consider making the next-generation Chevrolet Cruze in South Korea if the union calls off a wage-related strike.

The announcement follows GM's South Korean employees voting to strike after three months of discussions over salaries and production volume failed to reach a conclusion.

Employees also called for increased production after GM said it would stop selling Chevrolet-branded cars in Europe by the end of 2015. The decision led to a sharp reduction in output in Korea where many of GM's Europe-bound cars were made.

If the union accepts the latest proposal, GM could settle on building the Chevrolet Cruze at the southwestern factory of Gunsan, almost two years after ruling out the possibility. (reut.rs/1rwu2JG)

Gunsan is one of GM's four Korean factories. It has an annual production capacity of 260,000 vehicles and produces the Chevy Cruze and Orlando SUVs. (Reporting by Hyunjoo Jin and Joyce Lee; Editing by Christopher Cushing)

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